Background on TikTok and the Controversy
TikTok, a popular social media app owned by the Chinese company ByteDance, has been under scrutiny from the U.S. government due to concerns about user data privacy and potential foreign influence.
In 2024, the U.S. Congress passed a law requiring ByteDance to divest control of TikTok, citing national security risks. President Donald Trump has since postponed the implementation of this law twice, granting TikTok extensions to find a non-Chinese buyer.
Current Situation and Trump’s Decision
On the advice of his administration, President Trump has decided to extend the deadline for TikTok’s sale by an additional 90 days, pushing the new cutoff to mid-September.
This extension aims to prevent TikTok from being banned in the U.S., ensuring that users can continue using the app while safeguarding their personal data from potential Chinese access or influence.
White House press secretary Karoline Leavitt stated, “President Trump will sign an executive order this week to keep TikTok operational. As he has repeatedly emphasized, he does not want TikTok to disappear.”
The administration will work during this 90-day period to finalize a deal that ensures TikTok users’ data security and compliance with U.S. regulations.
Proposed Sale Structure
Earlier in April, a potential agreement was reportedly reached to separate TikTok US from ByteDance. This plan involved increasing non-Chinese investors’ stake from 60% to 80%, while ByteDance retained its current 20% share.
Oracle, which already hosts TikTok US data on its U.S. servers, was set to lead the new structure alongside investment managers like Blackstone or entrepreneur Michael Dell.
However, Trump’s imposition of tariffs on trading partners, especially China (initially 54%, later increased to 145% before being reduced), stalled the Chinese side of the deal.
Trump’s Expectations for Chinese Approval
Acknowledging the importance of securing China’s approval, Trump stated on Tuesday, “We likely need China’s agreement by mid-September, the new deadline.” He added, “I believe President Xi Jinping will eventually give his blessing.”
Trump’s Personal Stance on TikTok
Despite his administration’s actions, Trump has expressed a personal liking for the video-sharing app. His 2024 presidential campaign relied heavily on social media platforms, making TikTok’s continued existence crucial for his strategy.
Key Questions and Answers
- What is the reason for extending TikTok’s sale deadline? The extension aims to prevent a U.S. ban on TikTok while ensuring user data security.
- What is the proposed structure of TikTok’s sale? ByteDance would retain 20% ownership, while non-Chinese investors’ stake would increase from 60% to 80%. Oracle was set to lead the new structure.
- Why has the sale been delayed? Trump’s tariffs on China and other trading partners have complicated negotiations, particularly on the Chinese side.
- What is Trump’s expectation regarding China’s approval? Trump anticipates China will eventually approve the deal, with President Xi Jinping giving his blessing by mid-September.
- What is Trump’s personal stance on TikTok? Despite his administration’s actions, Trump personally appreciates the video-sharing app, which played a significant role in his 2024 presidential campaign.
